Bet the libbies are sweating bullets now! The economy' s growing FAST!
Just saw this story and the thought occured to me that the libbies can no longer use the economy to play dirty politics against the Bush administration. Their ' blame Bush' tactics are going to fly right back into their faces.
Quote:
By JEANNINE AVERSA, Associated Press Writer
WASHINGTON - The economy grew at a blistering 7.2 percent annual rate in the third quarter in the strongest pace in nearly two decades. Consumers spent with abandon and businesses ramped up investment, compelling new evidence of an economic resurgence.
The increase in gross domestic product, the broadest measure of the economy' s performance, in the July-September quarter was more than double the 3.3 percent rate registered in the second quarter, the Commerce Department (news - web sites) reported Thursday.
The 7.2 percent pace marked the best showing since the first quarter of 1984. It exceeded analysts' forecasts for a 6 percent growth rate for third-quarter GDP (news - web sites), which measures the value of all goods and services produced within the United States.
" This is a gangbuster number. Everything came together for the economy in the third quarter," said Mark Zandi, chief economist at Economy.com. " The key challenge now is jobs," he said.
The economy' s recovery from the 2001 recession has resembled the side of a jagged cliff; a quarter of strength often has been followed by a quarter of weakness. But analysts are saying that pattern could be broken, considering increasing signs the economy finally has shaken its lethargy and is perking up.
Near rock-bottom short-term interest rates, along with President Bush (news - web sites)' s third round of tax cuts, have helped the economy shift into a higher gear during the summer, economists said. The next challenge is making sure the rebound is self-sustaining, they said.
Democrats, however, argue that the tax cuts contributed to a record budget deficit in the recently ended 2003 fiscal year and have done little to spur significant job growth.
Although the nation' s payrolls grew by 57,000 in September "” the first increase in eight months "” the economy needs to add a lot more jobs than that each month to drive down the 6.1 percent unemployment rate, analysts have said.
The administration has argued that as economic growth improves, meaningful job creation will follow. Bush will be counting on that as he heads into the 2004 presidential election season.
The GDP report is " certainly encouraging news for our economy, but we still have more work to do to ensure that every American who wants a job can find a job," said Treasury Secretary John Snow.
In other encouraging economic news from the Labor Department (news - web sites), new claims for unemployment benefits last week dropped by 5,000 to 386,000, a sign that layoffs are slowing. U.S. workers' wages and benefits went up by 1 percent in the third quarter, up slightly from a 0.9 percent increase in the previous quarter.
Amid signs that the recovery is regaining traction, the Federal Reserve (news - web sites) on Tuesday decided to hold a key short-term interest rate at a 45-year low of 1 percent. Super-low short-term rates may give consumers and businesses an incentive to spend and invest more, boosting economic growth.
Economists believe the economy will grow at a slower "” but still healthy "” 4 percent rate in the final quarter.
In the third quarter, consumers ratcheted up their spending at a brisk 6.6 percent annual rate. That was the biggest increase since the first quarter of 1988 and was up from a 3.8 percent pace in the second quarter.
Consumers in the third quarter spent lavishly on big-ticket items, such as cars, boosting such spending by a whopping 26.9 percent rate. And, they also spent briskly on " nondurables" such as food and clothes, which grew at a 7.9 percent pace, the strongest showing since the first quarter of 1976.
While consumers have been the main force keeping the economy going, there are more signs that businesses are starting to do their part.
Especially encouraging was the 15.4 percent growth rate in spending by businesses on equipment and software in the third quarter. That marked the largest increase since the first quarter of 2000 and was up from a 8.3 percent growth rate in the second quarter.
Sustained turnarounds in capital spending and in hiring are crucial to the economy' s return to full throttle. Economists said business wants profits to improve and wants to be sure of the recovery' s vigor before it goes on a spending and hiring spree.
The red-hot housing market, powered by low mortgage rates, also contributed to the strong showing on third quarter GDP. Investment on residential projects grew at a 20.4 percent rate, the biggest increase since the second quarter of 1996, and more than three times the 6.6 percent growth rate seen in the second quarter.
Federal government spending, which grew at a 1.4 percent rate, was only a minor contributor to GDP in the third quarter. Spending on national defense was flat. But in the second quarter, military spending on the Iraq (news - web sites) war "” which grew at a whopping 45.8 percent rate "” helped to catapult economic growth.
A better trade picture in the third quarter also contributed to GDP growth.
But inventory reduction by businesses continued to be a drag on the economy and reduced third-quarter GDP by 0.67 percentage point. And a continuing reluctance by businesses to build up stocks suggest that executives remain wary of the rebound' s staying power.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
Beware of the statistics when we are talking about ' economic growth' and ' productivity' . Both numbers are very badly skewed by outsourcing of jobs and businesses to foreign countries.
This " growth" is merely an indication of stock wealth and not individual wealth.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
The people who blame Bush for the economy have small minds and short memories. The recession was noticably starting when Clinton was in office and it takes a little lag time to see its effects. That means the country was well into a recession before Bush was even close to being in office. Then came 9/11. At least we had a president in there that people could have confidence in. Can you imagine 9/11 and what followed if Gore were president? What a joke. The only thing the liberals have left is Iraq and, as far as I' m concerned, it was a good thing to go over there and clean house. As far as Bush lying - I don' t believe he did. Even if he did, it wouldn' t bother me. Where would we be if we were still waiting for the UN and countries like France to get on board? Oh yeah, Sean Penn and Susan Sarrandon would have gone over there and straightened things out.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
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This " growth" is merely an indication of stock wealth and not individual wealth.
If you own stocks, your wealth increases. More perceived wealth=more spending, more spending= more jobs.
__________________
Obamanfreude - 1. taking pleasure from the misfortunes of an Obama supporter as he or she is adversely affected by the policies of their Dear Leader.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
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More spending = more jobs ----> in china.
[>:]
More spending = more jobs ----> in china= more door greeter jobs at Walmart.
__________________
Obamanfreude - 1. taking pleasure from the misfortunes of an Obama supporter as he or she is adversely affected by the policies of their Dear Leader.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
Make no mistake. The pick-up in the economy will benifit everyone as time goes on. This was the only half way credible issue the bad guys had and now they are loosing that too. I Love It.
RE: Bet the libbies are sweating bullets now! The economy' s growing FAST!
Way I look at it, I' ve made enough on the stock market this year to put a hefty down payment on a new Silverado. A rising tide lifts all ships as they say.
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Obamanfreude - 1. taking pleasure from the misfortunes of an Obama supporter as he or she is adversely affected by the policies of their Dear Leader.
Bet the libbies are sweating bullets now! The economy' s growing FAST!
